Download Conservation and Demand Management Energy Efficiency

Conservation and
Demand Management
Energy Efficiency Cost
Effectiveness Tool User
Guide
Independent Electricity System Ontario
March 2015
Table of Contents
1.
Introduction...................................................................................................................................................................... 5
1.1.
How the Tool Supports the Lifecycle of Conservation Programs....................................................... 5
1.1.1.
Program Design (pre implementation) ............................................................................................... 5
1.1.2.
Program Tracking (during implementation) .................................................................................... 5
1.1.3.
Program Evaluation (during/post implementation) ..................................................................... 6
1.2.
Structure of User Guide ....................................................................................................................................... 6
2.
Tool Overview.................................................................................................................................................................. 7
3.
Module Overview ......................................................................................................................................................... 10
4.
3.1.
Defined Inputs Module....................................................................................................................................... 10
3.2.
Program Design Module .................................................................................................................................... 12
3.3.
Results Module ...................................................................................................................................................... 13
3.4.
Admin Input Module ........................................................................................................................................... 13
Using the Tool ................................................................................................................................................................ 15
4.1.
Custom Load Profile Inputs.............................................................................................................................. 15
4.1.1.
Add Custom Load Profile: Seasonal Method.................................................................................... 16
4.1.2.
Add Custom Load Profile: Hourly Method ....................................................................................... 17
4.2.
Custom Measure Input ....................................................................................................................................... 18
4.2.1.
4.3.
Define Custom Measure ........................................................................................................................... 19
Measure Selection & CE Results ..................................................................................................................... 24
4.3.1.
Select Single Measures ............................................................................................................................. 25
4.3.2.
Open Bulk Measure Selection Form .................................................................................................... 27
4.4.
Program Budget Input........................................................................................................................................ 28
4.5.
External Inputs ...................................................................................................................................................... 29
4.6.
CE Parameters ....................................................................................................................................................... 30
4.7.
Admin Inputs.......................................................................................................................................................... 31
4.8.
Ratepayer Assumptions Table ........................................................................................................................ 31
4.9.
Avoided Cost Table .............................................................................................................................................. 32
4.10.
Viewing Results ................................................................................................................................................ 32
4.10.1.
Detailed Cost Effectiveness Results .................................................................................................... 33
4.10.2.
Detailed Measure Savings ....................................................................................................................... 33
4.10.3.
Summary Cost Effectiveness Results .................................................................................................. 34
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5.
Scenarios .......................................................................................................................................................................... 35
Appendix A: Calculation Engine ...................................................................................................................................... 36
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List of Figures
Figure 1: High-Level Tool Overview .................................................................................................................................. 7
Figure 2: Guide Worksheet .................................................................................................................................................... 9
Figure 3: Tool Legend .............................................................................................................................................................. 9
Figure 4: Cost Effectiveness Tool Architecture ........................................................................................................... 10
Figure 5: Defined Inputs Module....................................................................................................................................... 10
Figure 6: Components Defining a Measure ................................................................................................................... 11
Figure 7: Program Design Module .................................................................................................................................... 12
Figure 8: Results Module ...................................................................................................................................................... 13
Figure 9: Admin Input Module ........................................................................................................................................... 13
Figure 10: Custom Load Profiles ....................................................................................................................................... 16
Figure 11: Custom Load Profile: Hourly Method........................................................................................................ 16
Figure 12: Custom Load Profile - Seasonal Method .................................................................................................. 17
Figure 13: Custom Load Profile - Hourly Method ...................................................................................................... 18
Figure 14: Program Design Module - Custom Measure ........................................................................................... 19
Figure 15: Custom Measure Input Form ........................................................................................................................ 20
Figure 16: Measure Description Fields ........................................................................................................................... 21
Figure 17: Measure Details - Field Descriptions......................................................................................................... 22
Figure 18: Early Replacement - Field Descriptions ................................................................................................... 24
Figure 19: Program Design Module - Measure Selection ........................................................................................ 25
Figure 20: Single Measure Selection – Blank Form ................................................................................................... 26
Figure 21: Single Measure Selection - Example Completed Form ....................................................................... 27
Figure 22: Bulk Measure Selection – Blank Form ...................................................................................................... 28
Figure 23: Bulk Measure Selection - Example Completed Form.......................................................................... 28
Figure 24: Program Budget Worksheet ......................................................................................................................... 29
Figure 25: External Inputs Worksheet ........................................................................................................................... 30
Figure 26: CE Parameter Descriptions ........................................................................................................................... 30
Figure 27: CE Parameters Worksheet ............................................................................................................................. 31
Figure 28: Admin Inputs Worksheet ............................................................................................................................... 31
Figure 29: Rates Table Worksheet ................................................................................................................................... 32
Figure 30: Avoided Cost Worksheet ................................................................................................................................ 32
Figure 31: Detailed Cost Effectiveness Results ........................................................................................................... 33
Figure 32: Detailed Measure Savings .............................................................................................................................. 34
Figure 33: Summary Cost Effectiveness Results......................................................................................................... 34
Figure 34: Sample User Scenarios .................................................................................................................................... 35
Figure 35: Calculation Engine ............................................................................................................................................ 36
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1. Introduction
The Cost Effectiveness Tool (the “Tool”) is intended to support IESO staff, LDC staff and other
external service providers and/or delivery agents to calculate resource savings, budget and cost
effectiveness metrics for new and existing conservation programs in Ontario.
The tool structure, nomenclature and analytic framework are based on a standard set of
conservation program design and cost effectiveness test concepts. These concepts are discussed in
detail in the IESO Cost Effectiveness Test Guide and IESO EM&V Protocols and Requirements
available on the IESO website. It is recommended that users review that guide prior to designing
their conservation program and prior to using the Tool.
1.1. How the Tool Supports the Lifecycle of Conservation Programs
1.1.1. Program Design (pre implementation)
The Tool is primarily a mechanism for program design and planning. Though the Tool does not
guarantee actual results in terms of measure‐level or program‐level resource savings or cost
effectiveness, it can provide a baseline to track against. Using a combination of program‐specific data
(as input by the user), measure‐specific data and other relevant data (e.g. discount rate,
transmission and distribution system losses, avoided cost and ratepayer assumptions) the Tool
calculates forecasted resource savings and cost effectiveness test metrics.
Before using the Tool for program design purposes, users are expected to have developed a program
concept and preliminary program design. The program design should be focused on a particular
target market and should identify applicable measures and measure‐specific assumptions for
number of participants, incentive costs, net‐to‐gross ratios and program costs. All key program
design elements are inputs to the Tool.
1.1.2. Program Tracking (during implementation)
Using a combination of program‐specific data (as input by the user), measure‐specific data and other
relevant data (e.g. discount rate, transmission and distribution system losses, avoided cost and
ratepayer assumptions) the Tool calculates preliminary resource savings and cost effectiveness test
metrics during implementation.
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Before using the Tool for program assessment purposes, users are expected to have a pre-populated
version of the Tool containing the programs, initiatives, and measures the user wishes to assess. The
user must also have participation data by measure, spending information by initiative and/or
program and any updates to initial program design concepts.
1.1.3. Program Evaluation (during/post implementation)
Using a combination of program‐specific data (as input by the user), measure‐specific data and other
relevant data (e.g. discount rate, transmission and distribution system losses, avoided cost and
ratepayer assumptions) the Tool calculates evaluated resource savings and cost effectiveness test
metrics.
Before using the Tool for program evaluation purposes, users are expected to have verified
measure‐specific assumptions, verified number of participants, actual incentive and program costs,
and verified net‐to‐gross ratios.
1.2. Structure of User Guide
This User Guide first provides an overview of the Tool’s architecture and provides a high-level
description of the functionality of each module. The User Guide then provides detailed and step-bystep instructions for the tool’s various functions in each module/worksheet. The User Guide then
outlines selected scenarios and references the sections in the User Guide that are relevant for that
scenario. An appendix outlines the functionality within the calculation engine of the Tool.
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2. Tool Overview
The Tool consists of modules that provide different functionalities for the user.




The Defined Inputs Module houses the repository worksheets of both load profiles and
measures. The module also provides the option for users to create custom load profiles.
The Program Design Module allows the user to create and select measures and specify
initiative and program level information to calculate cost effectiveness metrics.
The Results Module displays the cost effectiveness metrics in varying levels of detail for the
measures, initiatives, and programs the user selected in the program design module.
The Admin Input Module allows the Tool administrators to input consistent assumptions so
all users are working with the same assumptions.
The tool works though each module to arrive at cost effectiveness results at the measure, initiative,
program, and portfolio level. The Defined Inputs Module contains the measures available to users
in the Program Design Module. A “measure” in the Tool is defined as more than just the
conservation technology. Section 3.1 provides a full list and detailed descriptions of each component
of the “measure.” Users select measures and provide program information in the Program Design
Module. The Calculation Engine is activated and the user is able to view results in the Results
Module. Figure 1 provides a diagram to illustrate this high-level process.
Figure 1: High-Level Tool Overview
There are several features within the Tool that assist users in navigating, understanding and using
the Tool such as hyperlinks, built-in instructions and colour-coding.
The “Guide” worksheet, located in the Tool and illustrated in
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Figure 2, provides a list of each module and specifies the worksheets within that module. Clicking on
the module or worksheet name links the user directly to the appropriate location in the tool.
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Figure 2: Guide Worksheet
Worksheet
names are
directly linked
Modules are
colour-coded
Description of
module
provided
High-level function of
worksheet outlined (e.g.,
user input, administrative)
The Tool is populated with built-in instructions, descriptions, and tips that the user will interact
with. Each worksheet contains a high-level description of its functionality and purpose and any
instructions. Tips are provided throughout the tool using comment boxes.
The Tool is colour-coded to provide the user with information. The colour-codes for text and cells
are specified in Figure 3, below and can also be found in the “Guide” worksheet.
Figure 3: Tool Legend
Code
Code Definition
Description
User input (mandatory)
These cells or columns provide the model with key parameters
required to complete cost effectiveness calculations. If these
cells are not populated, the model will return an error.
Black Text
User input (optional)
These cells or columns provide the model with parameters that
may be populated through a user input form. However, the user
can use these cells/columns to manually override the
information provided from the input form.
Black Text,
Italics
Description or
Instructions
These cells contain information for the user to better
understand the procedures and/or purpose associated with a
particular worksheet.
Black Text
Calculated cell
Blue Text
White Text
Red Text
Calculated columns
Caution
These cells/columns contain formulas that are essential to the
calculation of the tool, in most cases these cells are locked and
cannot be modified by the user.
These instructions indicate a step that is critical or a mistake
that is common that may result in an error in the tool. Special
care should be taken when these instructions are encountered.
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3. Module Overview
This section provides a detailed description of each module the user may interact with. Users do not
interact with the calculation engine. However, it will be described in detail in Appendix A:
Calculation Engine for information purposes.
Figure 4 provides a detailed map of the Tool’s architecture. Each node represents a worksheet in the
Tool. The dotted grey lines indicate the boundaries of each module. The arrows indicate how
information flows between the modules. The figure and the Tool itself are colour-coded for easy
navigation and reference. Users may need to interact with all modules in the Tool. However, specific
use will depend on the type of user and the assessment being performed.
Figure 4: Cost Effectiveness Tool Architecture
3.1. Defined Inputs Module
The Defined Inputs Module consists of three worksheets.


Figure 5: Defined Inputs Module
The “Formatted Measure List” and the “Formatted Load
Profile List” are repository worksheets that contain the
building blocks of the Program Design Module.
The “Custom Load Profile Input” worksheet contains a
user interface to add custom load profiles to the
“Formatted Load Profile Worksheet.”
The “Formatted Measure List” worksheet contains the measures
that can be selected in the Program Design Module. The Tool is
initially populated with the measures from the IESO Measures and Assumptions List (MAL). As
mentioned previously, a measure is defined more broadly than just the conservation technology.
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Figure 6 specifies and describes each component that defines a measure in the Tool. Together, these
components create a unique ID for each measure.
Figure 6: Components Defining a Measure
Measure Component
Active
Sector
Initiative
End-Use
Conservation Measure
Measure Description
Base Measure
End Use Load Profile
Early Replacement
Weather Sensitive Peak
Demand
Dx or Tx Connected
Component Description
A YES/NO flag specifying whether a measure is available through programs
currently active in the marketplace
The marketplace sector in which the conservation technology will be
implemented - can also contain the program name (e.g. Consumer, Business, Low
Income)
The initiative that the conservation technology is mapped to and delivered
through (e.g., Appliance Program, Heating & Cooling Program)
The high-level group of technologies (e.g., lighting, HVAC)
The conservation technology offered/installed or the conservation action
undertaken
A concise description of the conservation technology or action that makes the
measure easier to identify
The base technology that is used to determine the amount of savings that can be
achieved by implementing the conservation measure
The shape of the annual electricity use of the measure in terms of eight season
and time-of-use buckets
A YES/NO flag specifying whether the base measure is replaced before the end of
life, this impacts the baseline electricity use used to calculate savings and
incremental costs (or participant costs)
A YES/NO flag specifying whether the conservation measure is weather sensitive
as defined in the IESO EM&V Protocols and Requirements
A Dx/Tx flag specifying whether the conservation measure will be implemented
by a customer that is connected to the distribution system (Dx) or transmission
system (Tx)
If a measure is not found within the “Formatted Measure List,” the user can create a new measure
within the Program Design Module discussed in the next section. If the user adds custom measures,
they will only be visible in their version of the Tool. It is important to maintain consistency and
discipline between versions of the Tool to ensure that the “Formatted Measure List” contains what
the user needs. Part of the administrative functions associated with the Tool is maintaining the
integrity of the “Formatted Measure List.”
The “Formatted Load Profile List” worksheet contains the load profiles that are used within the
definition of a measure. The Tool is pre-populated with a standard list of Residential and
Commercial Load Profiles. The load profiles within this list are used to calculate the peak demand
savings for custom measures and to divide the annual kilowatt hour savings into eight season-andtime-of-use savings to develop the avoided supply cost component used in several cost effectiveness
tests. A load profile cannot be referenced in the “Formatted Measure List” or used to create a custom
measure unless it is within the “Formatted Load Profile List.” Part of the administrative functions
associated with the Tool is maintaining the integrity of the “Formatted Load Profile List.”
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The “Custom Load Profile Input” worksheet contains the user interface to add new load profiles to
the “Formatted Load Profile List.” Users can add load profiles using two methods:
1. Hourly Method: load profiles are generated from 8760 (hourly) load information for a
desired custom load profile; and/or,
2. Seasonal Method: load profiles are populated in the Tool using an eight season-and-time-ofuse breakdown of electricity use for a desired custom load profile. Users must also know the
peak demand metrics to use this method.
3.2. Program Design Module
The Program Design Module contains four worksheets that outline Figure 7: Program Design Module
the steps needed to design a program to assess for cost
effectiveness using the Tool. The four steps must be completed in
sequence.




The first worksheet “Custom Measure Input” is step one
and contains a user interface for the creation of custom
measures;
The second worksheet “Measure Selection & CE Results” is
step two and contains a user interface to select the
measures to assess for cost effectiveness;
The third worksheet is step three “Program Budget Input” contains a dynamic user interface
to input program budgets; and,
The final worksheet “DR Input” is step four and contains a user interface to add results from
external sources, for example, the DR Cost Effectiveness Tool.
The “Custom Measure Input” worksheet is an optional step that allows the user to create any new
measures that are not already defined within the “Formatted Measure List” worksheet. Once
measures are populated within the “Formatted Measure List,” they can be used in step 2. The user
interface in this worksheet is very flexible and will allow the user to input a wide range of values,
names, etc. Users must exercise caution when inputting measures to ensure that the information is
descriptive, accurate, and appropriate.
The “Measure Selection & CE Results” worksheet allows the user to select any combination of
measures found within the “Formatted Measure List” to be included in the initiative(s) and
program(s) that will be assessed for cost effectiveness. At this stage users input program design
considerations such as the program year, participation, incentives, and any variable program costs.
Once the measures are selected, the user can still modify the program year, participation, incentives
and variable program costs and view cost effectiveness results at the measure level.
The “Program Budget Input” worksheet dynamically populates the programs, initiatives, and
program years based on the measures selected by the user. The user can then input any program
costs (i.e., not customer incentives) that are not incurred at the measure level, for example,
marketing, evaluation or overhead administration costs. The worksheet contains detailed cost
categories such as market research and customer care.
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The “DR Input” worksheet allows the user to input results from external cost effectiveness tools so
the results can be incorporated into the portfolio cost effectiveness assessment.
Once the user completes all four steps in this module, the information is passed to the calculation
engine to calculate the cost effectiveness metrics. Users can then view results in the Results Module.
3.3. Results Module
The Results Module contains three worksheets that provide cost
effectiveness results in varying levels of detail for the inputs provided
in the Program Design Module.



Figure 8: Results Module
The “Initiative Portfolio CE Results” worksheet provides
detailed cost effectiveness results;
The “Measure Savings Results” worksheet provides lifetime
savings at the measure level; and,
The “Summary CE Results” worksheet provides consolidated,
summary cost effectiveness results.
The “Initiative Portfolio CE Results” worksheet provides a breakdown of the cost effectiveness
metrics (TRC, SC, PAC, PC, RIM, LC) for each initiative, sector, and program year and combinations
thereof. This worksheet provides, for each test, the benefits, costs, net benefits, and net benefit ratio.
The initiatives, programs, and program years displayed will reflect those selected by the user in the
Program Design Module and the outputs from the external cost effectiveness tools.
The “Measure Savings Results” worksheet provides the measure level savings over the lifetime of the
conservation measure. The savings will begin to appear in the program year specified by the user
and will terminate at the end of the measure’s effective useful life (EUL), taking into account any
early retirement scenarios. The savings are displayed as net peak demand and energy savings at the
generator level (i.e., including transmission and distribution losses) and gross peak demand and
energy savings at the generator level.
The “Summary CE Results” worksheet provides a snapshot of the
cost effectiveness metrics including the TRC ratio, the PAC ratio,
and the LC metric. In this worksheet only the net benefit ratio is
displayed and the LC ($/MW-year and $/MWh) metrics.
Figure 9: Admin Input Module
3.4. Admin Input Module
The Admin Input Module contains four worksheets. Only
administrative users will have access to and will be able to modify
these worksheets.


The “Admin Inputs” worksheet allows Tool administrators
to set peak demand definitions;
The “CE Parameters” worksheet allows the Tool administrators to set standard assumptions
within the tool;
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

The “Avoided Cost Table” worksheet contains the avoided cost assumptions; and,
The “Rates Table” worksheet contains the ratepayer assumptions.
The “Admin Inputs” worksheet allows Tool administrators to set the definition of peak demand in
the Tool to either summer peak or winter peak. The peak demand definition is used to determine the
proper savings used in the cost effectiveness analysis. There is also an option for the administrator
to specify the screen resolution that will be compatible with the Tool.
The “CE Parameters” worksheet allows Tool administrators to set standard assumptions that are
used to calculate cost effectiveness results in the Tool, including:






Discount rate;
Societal discount rate;
Inflation rate;
Base year;
Transmission system losses; and,
Distribution system losses.
All assumptions are used in the calculations of lifetime benefits and costs for each measure,
initiative, and program. The discount rate, societal discount rate, inflation rate, and base year are
used to calculate the results of the Tool in real dollars of the specified base year. The transmission
and distribution losses are used to determine the proper savings to be used in the cost effectiveness
analysis.
The “Avoided Cost Table” and “Rates Table” worksheets are used to calculate certain costs and
benefits. Tool administrators input these assumptions to ensure that conservation measures are
consistently valued.
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4. Using the Tool
This section first provides detailed descriptions of each user interface worksheet and then provides
detailed, step-by-step instructions for the processes within the worksheet.
The Tool is designed using VBA, it is critical that the user “Enable Macros” in Excel before beginning.
Tool Tip: To enable macros in Excel select “File” then “Options” then “Trust Center” then “Trust
Center Settings” then “Macro Settings,” finally select “Enable all macros.” You may need to re-open
the file for these changes to take effect. Alternately, a security warning may appear at the top of
your worksheet, if this is the case simply click “Enable Content.”
4.1. Custom Load Profile Inputs
The “Custom Load Profile Input” worksheet allows users to add and manage custom load profiles.
Tool Tip: Before adding a new load profile cross-check the load profile against the existing Load
Profile List, if it does not already exist, ensure all data is consolidated and easily accessible
The “Custom Load Profile Input” worksheet contains six buttons as shown in Figure 10 and Figure
11, below.
1. Add Custom Load Profiles To Formatted Load Profile List: allows the user to transfer the
custom load profiles to the Load Profile List once all new custom load profiles have been
reviewed by the user;
2. Add Custom Load Profile: Seasonal Method: when 8760 data is unavailable this button
populates the table in columns B to Q;
3. Delete Selected Custom Load Profile: allows the user to delete a custom load profile by
selecting any cell from column B to column Q within the row of the load profile to be deleted;
4. Clear All Custom Load Profiles: allows the user to clear the table in columns B to Q;
5. Add Custom Load Profile: Hourly Method: calculates the load profile when 8760 data is
available and populates the table in columns B to Q; and,
6. Clear Hourly Data: clears the hourly data in the input table.
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Figure 10: Custom Load Profiles
Button
1
Button
2
Button
3
Button
4
Figure 11: Custom Load Profile: Hourly Method
Button
5
Button
6
4.1.1. Add Custom Load Profile: Seasonal Method
The seasonal load profile method is used when a full calendar year of hourly data is not available,
but the eight season-and-time-of-use buckets are known.
1. Click the “Add Custom Load Profile: Seasonal Method” button on the “Custom Load Profile
Input” worksheet.
2. Input the data as specified in the form. Note that the drop-downs allow the user to select
existing values (i.e. sector, segment, load profile name) or input custom values.
3. Once all new custom load profiles have been input, review the results in the main table on
the left side of the on the “Custom Load Profile Input” worksheet.
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Figure 12: Custom Load Profile - Seasonal Method
Sector: customer type (i.e. residential,
commercial, industrial)
Segment: Further differentiates the
customer (i.e., warehouse, restaurant)
Load Profile Name: descriptive name of
load profile, will appear in drop-downs
Energy Load Profile: percent of annual
consumption segmented by eight season
and time-of-use buckets, values must
sum to 100
Demand Load Factor: percent of annual
consumption that falls within summer
peak and winter peak periods based on
the definitions found in the IESO EM&V
Protocols and Requirements
4.1.2. Add Custom Load Profile: Hourly Method
The hourly load profile method is used when a full calendar year of hourly data is available. This
data is used to generate a load profile that specifies consumption over eight season-and-time-of-use
periods.
1. Click the “Clear Hourly Data” button on the right side of the “Custom Load Profile Input”
worksheet.
2. Input the sector, segment, and load profile name of the measure into cells T2: T4 in the
“Custom Load Profile Input” worksheet. Note that the drop-downs allow the user to select
existing values (i.e. sector, segment, load profile name) or input custom values.
3. Input the measure data year in cell T5 of the “Custom Load Profile Input” worksheet. The
measure data year represents what year the 8760 data was taken from. This is important to
capture to ensure that the days are correctly allocated to weekdays, weekends, and holidays.
If a leap year is input, the Tool will automatically adjust the hours and calculate accordingly.
4. Input the hourly kWh data into column V of the “Custom Load Profile Input” worksheet.
5. Click the “Add Custom Load Profile: Hourly Method” button.
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Figure 13: Custom Load Profile - Hourly Method
Sector: customer type (i.e. residential, commercial, industrial)
Segment: Further differentiates the customer (i.e., warehouse, restaurant)
Load Profile Name: descriptive name of load profile
Year: load data year, required to ensure season and time of use periods are
calculated correctly the Tool will automatically adjust if a leap year is selected
kWh: Input hourly kWh consumption data here
4.2. Custom Measure Input
The “Custom Measure Input” worksheet allows users to create custom measures.
Tool Tip: before you begin, compile and check all measure data, cross-check the measure against
the existing Measure List, confirm the name of your initiative, program, etc. is consistent with the
summary results you wish to see (results are aggregated by initiative and program name), ensure
all data is consolidated and easily accessible.
The “Custom Measure Input” worksheet contains four buttons:
1. Define Custom Measure: activates a user form to add a custom measure and its associated
assumptions, once the user clicks the “Add Measure” button within the form, the measure is
added to the table from column B to column AF in the “Custom Measure Input” worksheet;
2. Delete Custom Measure(s): allows the user to delete a custom measure by selecting any
cell from column B to column AF in the “Custom Measure Input” worksheet within the row of
the measure to be deleted;
3. Clear All Custom Measures: allows the user to clear the table in columns B to AF; and,
4. Add Custom Measures to Formatted Measure List: transfers the custom measures created
by the user to the “Formatted Measure List” from the table in column B to column AF in the
“Custom Measure Input” worksheet.
Tool Tip: Prior to inputting custom measure data into the tool, organize the measures so similar
measures are grouped together. When inputting new measures the input form does not
automatically close after a measure is added, therefore different components can be changed, the
measure name updated and added to the formatted measure list. Keep in mind that the combination
of the measure description fields create the unique measure ID and duplicate measures cannot be
added.
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Figure 14: Program Design Module - Custom Measure
Button
1
Button
2
Button
3
Button
4
4.2.1. Define Custom Measure
The Measure Design Form is launched by clicking the “Define Custom Measure” button. As shown in
Figure 15, The Custom Measure Input Form is split into three sections:



Measure Description;
Measure Details; and,
Early Replacement.
Each field in this form must be complete unless the field is inactive (i.e., grey). If a field is not
applicable, the user should input 0 or “N/A” for text fields. The sections below provide descriptions
of each field within each section.
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Figure 15: Custom Measure Input Form
Measure Description: these
fields create the unique
measure ID; if the combination
of the 10 fields is not unique,
the measure cannot be added
Measure Description
The Measure Description section allows the user to specify the details of the new measure, the
combination of the ten fields create the measure’s unique ID. Through this form the user can choose
to create the measure as part of an existing initiative or program, or create a new program or
initiative. A new program or initiative is added by creating a new measure with a new initiative or
program name that is not currently in the “Formatted Measure List.”




The Tool provides results at the initiative and program levels based on the initiative and
program name. If a new measure is intended to be an addition to an existing program or
initiative, the user should ensure that the program and/or initiative name aligns with the
names currently found in the “Formatted Measure List.”
Conversely, if the user would like to separate the results of the model, they can modify the
initiative and/or program name.
The drop-down options in each field allow the user to select existing initiative and/or
program names already in the “Formatted Measure List.”
The Custom Measure Input form will not auto-populate the form based on existing base or
conservation technologies, it is important to consider how the measure will be used in the
particular segment, for example, if the operating hours are larger, the EUL may be shorter.
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Figure 16 provides a description of each field of the Measure Description section of the Custom
Measure Input form. Please see Figure 6 for definitions of each field.
Tool Tip: keep in mind the levels of aggregation in the results (i.e., initiative, program) to have the
ability to compare the results of multiple scenarios side by side.
Figure 16: Measure Description Fields
Field Name
Active
Sector
Initiative
End-Use
Conservation Measure
Measure Description
Base Measure
Load Profile
Weather Sensitive Load
Profile
Distribution System
Connected Measure
Field Description
Whether or not a measure is currently available to customers
Which sector the measure implemented in (i.e., consumer, business, industrial,
low income) or select an existing sector name from the drop-down
The new initiative name or select an existing initiative name from the dropdown
The end-use of the new measure (i.e. Lighting, HVAC, etc.)
The new measure’s conservation technology
A descriptive name for the new measure, please note that this name should be
descriptive enough that it can be selected from a drop down list with ease in the
program design phase
The new measure’s assumed baseline technology
Please take note of any policies within the IESO’s EM&V Protocols and
Requirements
The load profile used to determine the new measure’s seasonal savings and
peak demand savings
Please note that new load profiles can be added to the repository and used
when creating a new measure
See section 4.1 for more information
Whether or not a measure’s peak demand savings should be calculated using a
weather sensitive peak demand definition
Please take note of the definition within the IESO’s EM&V Protocols and
Requirements
Whether or not a measure is connected to a distribution system connected
customer or a transmission system connected customer
Measure Details
The Measure Details section allows the user to specify the assumptions used to calculate resource
savings and certain costs. The form will automatically calculate certain fields based on the standard
calculation for that particular metric. However, the user has the option to override the standard
calculations. The standard calculations should not be overridden unless the user has a reason to
override them. When developing the assumptions, users should align with the IESO EM&V Protocols
and Requirements. Figure 17, below, describes each field in the measure details section.
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Figure 17: Measure Details - Field Descriptions
Field Name
Effective Useful Life (Years)
Assumed Annual Operating Hours
Base Case (kW)
Conservation Case (kW)
Base Case (kWh)
Conservation Case (kWh)
First Year Energy Savings (kWh)
First Year Demand Savings (kW)
Peak Demand Savings (kW)
First Year Water Savings (Litre)
Field Description
The EUL is the lifetime in years the measure is expected to function.
The user should keep in mind the interactions between the operating
hours they have assumed
The number of hours per year the measure is operating and savings
are realized
This value must not exceed the number of hours in a given year
Average annual kilowatt use (not peak kilowatt use) of the baseline
technology assumed for the new measure
Average annual kilowatt use (not peak kilowatt usage) of the new
measure
The kilowatts populated in this field must be less than the Base Case
(kW)
Annual kilowatt hour use of the baseline technology assumed for the
new measure
This field is automatically calculates based on annual operating hours
and the kilowatt use and may be overridden if the “Override”
checkbox is selected
Annual kilowatt hour use of the new measure
Automatically calculates based on the annual operating hours and the
kilowatt use and may be overridden if the “Override” checkbox is
selected
The difference between the base case and conservation case kilowatt
use
This is a calculated field that may be overridden if the “Override”
checkbox is selected
The difference between the base case and conservation case kilowatt
use
This is a calculated field that may be overridden if the “Override”
checkbox is selected
The difference between the base case and conservation case kilowatt
use converted to a peak value using the load profile
This is a calculated field that may be overridden if the “Override”
checkbox is selected
If the user has overridden the calculation, but does know the peak
demand savings the user can input the first year energy savings and
click the “Calculate Peak Demand After Override”
Checking this box will enable the calculation of peak demand savings
based on first year energy savings
Any reduction in water use directly resulting from the
implementation of the new measure (i.e., the different between the
water use of the base and conservation measure or action)
Please note that there can be negative water savings (i.e., increase in
water use), if this is the case, it should be input as such
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Field Name
First Year Natural Gas Savings
(MMBtu)
Net-To-Gross (Demand)
Net-To-Gross (Energy)
EE Full Installed Cost ($)
Baseline Full Installed Cost ($)
Incremental Life Cycle Cost ($)
Override Energy and
Savings Calculations
Calculate
Override
Peak
Demand
Demand
after
Field Description
Any reduction in natural gas use directly resulting from the
implementation of the new measure (i.e., the different between the
natural use of the base and conservation measure or action)
Please note that there can be negative natural gas savings (i.e.,
increase in natural gas use), if this is the case, it should be input as
such
The ratio that is applied to the kilowatt or kilowatt hour savings to
reflect only savings attributable to the program, the intended program
delivery will impact this number.
The same measure delivered through two initiatives may have a
different Net-to-Gross
The Net-to-Gross for demand and energy may be the same for certain
measures and programs
The full cost to the participant to implement the conservation
measure or action
The full baseline cost, for example, the cost of the existing equipment
to be replaced, the cost of the code-compliant equipment that would
have replaced the participant’s equipment
The incremental cost to the participant to implement the conservation
measure or action over the lifetime of the measure (also referred to as
participant cost)
This is a calculated field:
 If a participant is replacing equipment at the end of its useful
life, the Incremental Life Cycle Cost would be calculated by
subtracting the Baseline Full Installed Cost from the EE Full
Installed Cost
 In some instances, the Incremental Life Cycle Cost is equal to
the EE Full Installed Cost
Please refer to the IESO CDM EE Cost Effectiveness Guide for more
information on the participant cost
This field allows the user to override the standard energy and demand
calculations
The user should have a specific reason for overriding the standard
calculations
This field enables a calculation of peak demand after the user has
selected the option to override energy and demand savings
calculations
This is typically used if a user has a load profile and demand or energy
savings, but may not have peak demand savings values
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Early Replacement
This section allows the user to input information regarding the early retirement or early
replacement of a new measure. Please refer to the IESO CDM Cost Effectiveness Guide for more
information regarding early retirement/early replacement scenarios.
Figure 18: Early Replacement - Field Descriptions
Field Name
Early Replacement
Remaining Useful Life (Years)
RUL Base Case (kW)
Remaining Life Annual Energy
Savings (kWh)
Remaining Life
Demand (kW)
Summer
Peak
Remaining Life Natural Gas Savings
(MMBtu)
Remaining Life Water Savings
(Litre)
Remaining Incremental Life Cycle
Cost ($)
Override Energy and
Savings Calculations
Calculate
Override
Peak
Demand
Demand
after
Field Description
Captures the case when a participant replaces a technology before the
end of its EUL
This is a yes or no field, the default is no
The number of years until the existing equipment would remain in
operation had the conservation technology not been installed
The kilowatt savings during the remaining useful life
The savings are defined as the difference between the existing
conservation measure or action and the new measure or action
The kilowatt-hour savings during the remaining useful life
This is a calculated field that may be overridden if the “Override”
checkbox is selected
The peak kilowatt savings during the remaining useful life
This is a calculated field that may be overridden if the “Override”
checkbox is selected
The natural gas savings during the remaining useful life
The water savings during the remaining useful life
This is a calculated field that is calculated by subtracting the “deferred
replacement credit1” from the EE Full Installed Cost
Please refer to the IESO CDM Cost Effectiveness Guide for more
information regarding the participant cost
This field allows the user to override the standard energy and demand
calculations
The user should have a specific reason for overriding the standard
calculations
This field enables a calculation of peak demand after the user has
selected the option to override energy and demand savings calculations
This is typically used if a user has a load profile and demand or energy
savings, but may not have peak demand savings values
4.3. Measure Selection & CE Results
The “Measure Selection & CE Results” worksheet allows the user to select measures to include in the
cost effectiveness assessment and to specify program design parameters such as program year,
incentives, participation, and variable program costs.
The “deferred replacement credit” credit is calculated based on the present value of the difference between
two infinite streams of replacement costs, one in which the baseline equipment is first replaced after the
equipment’s RUL, and the other in which the baseline equipment replacement is deferred by the expected
useful life (EUL) of the retrofit measure less the RUL of the early-retired equipment.
1
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Tool Tip: compile and check all measure data for the program that will be assessed (i.e., program
year(s), incentive costs, participation (quantity), incentives, and variable program costs), ensure all
data is consolidated and easily accessible.
The “Measure Selection & CE Results” worksheet contains four buttons:
1. Single Measure Selection: activates a user form to add select measures and specify the
program year, participation (quantity), and costs (incentive and variable program). Once the
user clicks the “Add” button within the form, the measure is added to the table from column
B to column AQ in the “Measure Selection & CE Results” worksheet;
2. Bulk Measure Selection: activates a user form to add all measures from a particular
initiative. Once the user selects “Add All Measures” the measures are added in the table from
the table in column B to column AF in the “Custom Measure Input” worksheet. In this case,
the program year, participation, and costs are modified directly in the spreadsheet in
columns J:M;
3. Delete Measure(s): allows the user to delete a measure/measures by selecting any
cell/cells from column B to column AQ in the “Measure Selection & CE Results” worksheet
within the row of the measure to be deleted; and,
4. Clear All Measures: allows the user to clear the table in columns B to AQ.
Figure 19: Program Design Module - Measure Selection
Button
1
Button
2
Button
3
Button
4
Tool Tip: The user form does not close after each measure is selected. When filling out the Program
Design Module, the user can input measures for multiple program years one after another by
selecting the measure and adding one program year, modify the program year (and quantity and
incentive if that is appropriate) and add the measure again.
4.3.1. Select Single Measures
The Single Measure Selection form is launched by clicking the “Single Measure Selection” button
shown in Figure 20, below. This form allows the user to select a single measure to add to the cost
effectiveness analysis.
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1. Select the measure specifications in each drop-down in the form. As each drop-down is
selected, the options in the next drop-down will filter accordingly. For example, if a user
selects “Residential,” only residential initiatives would be options for selection.
2. Select “Yes” or “No” for the early retirement scenario. This field only presents both options
when early retirement information is specified in the measure list.
3. Select “Yes” or “No” for the weather sensitive selection. This field only presents both options
when a weather sensitive measure is specified in the measure list.
4. Select “Dx” or “Tx” for the Tx or Dx connected selection. This field only presents both options
when a measure is specified as both Tx and Dx connected in the measure list.
5. Input additional program information:
 Program year: specify the year the program will begin to deliver savings.
 Quantity (participation): specify the quantity of measures implemented. Note that
the participation metric may be different for different measures (e.g., # of projects, #
of units, etc.)
 Incentive level: specify the incentive level per unit for the measure selected.
 Variable program costs: specify any costs that can be considered to vary with
participation. Keep in mind which costs are input in Step 3 (program costs) to avoid
double counting.
6. Click “Add Measure” to include the measure in the cost effectiveness analysis.
Figure 20: Single Measure Selection – Blank Form
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Figure 21: Single Measure Selection - Example Completed Form
4.3.2. Open Bulk Measure Selection Form
The Bulk Measure Selection form is launched by clicking the “Bulk Measure Selection” button shown
in Figure 22, below. This form allows the user to add all measures mapped to a particular initiative
in the “Formatted Measure List.”
1. Select the measure specifications in each drop-down in the form. As each drop-down is
selected, the options in the next drop-down will filter accordingly. For example, if a user
selects “Residential,” only residential initiatives would be options for selection;
2. Specify the program year (the year the program will begin to deliver savings);
3. The user can choose to enter placeholder values for the quantity (participation), incentives,
and variable program costs; and,
4. Click “Add All Measures in the Selected Initiative” to add all measures.
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Figure 22: Bulk Measure Selection – Blank Form
Figure 23: Bulk Measure Selection - Example Completed Form
4.4. Program Budget Input
The “Program Budget Input” worksheet allows the user to input program costs for each initiative,
program, and program year specified.
Tool Tip: compile and check all program cost data associated with the measures, initiatives, and
programs that will be assessed; ensure all data is consolidated and easily accessible; Keep in mind
where costs are reflected to avoid double counting.
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The “Program Budget Input” worksheet contains two buttons:
1. Create new program budget: will populate a table containing the initiatives, programs and
program years specified by the user with many different cost types. This button must be
clicked for the Results Module to function properly.
2. Delete Budget: will clear the sheet.
The “Program Budget Input” worksheet allows the user to input the costs that are not provided at
the measure level, for example, initiative evaluations, sector level marketing, etc. Once the Measure
Selection form is complete, the initiatives, programs, and program years input by the user will
appear in the worksheet.
The user must input the costs in the table in nominal dollars (the tool will convert the costs to real
dollars). In the event that costs are incurred outside of the program year, the user must convert the
dollars to reflect nominal amounts for a given year.
For example, if costs for a marketing campaign are $20,000 spent in 2014 (the year before a
program is expected to begin delivering savings), these costs must be adjusted for inflation to reflect
the costs in nominal dollars for the year in which the program is expected to begin to deliver savings
(2015). Assuming the inflation rate is 2%, the costs for the marketing campaign input into the tool
for 2015 should be
. Alternately, the user can input a 2014
program year with no savings into the Tool and populate the Tool with nominal dollars.
Figure 24: Program Budget Worksheet
Button
1
Button
2
Table dynamically populates
4.5. External Inputs
The “DR Inputs” worksheet allows the user to input the cost effectiveness results from external cost
effectiveness tools, for example, the DR Cost Effectiveness Tool, to compute combined cost
effectiveness results at the portfolio level.
Tool Tip: complete the cost effectiveness assessment in the external Tool for the measures,
initiatives, and programs to be incorporated into the portfolio level cost effectiveness. Ensure
assumptions are aligned (e.g., inflation rate, discount rate, base year, etc.) and all costs are
reflected.
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It is important to ensure that the same parameters in the Admin Input Module are used in the
external cost effectiveness tool to ensure the results can be properly aggregated.
Figure 25: External Inputs Worksheet
4.6. CE Parameters
The “CE Parameters” worksheet allows administrative users to input standard assumptions in the
Tool to enhance the comparability of results.
Figure 26: CE Parameter Descriptions
Parameters
Discount rate
Societal discount rate
Inflation rate
Base year
Transmission system losses
Distribution system losses
Description
The discount rate expresses the time value of money. The higher the discount
rate, the faster the dollar loses value as the delay in acquiring that dollar
increases over time.
Some jurisdictions will vary the discount rate according to the perspective
being evaluated. A societal discount rate is lower reflecting the uncaptured
value of CDM.
Since the costs and benefits associated with the implementation of CDM are
assessed over a span of time – the EUL of a measure – they must be adjusted
for forecast inflation.
The base year selected represents the year that is used as a basis for valuing
costs and benefits. The analysis will be expressed in the base year dollars.
Line losses occur between energy produced at the generator and energy
consumed by the customer or end-user. As a result, energy savings observed
by the end-user (the customer) actually understate true savings observed by
the generator. Transmission system losses account for line losses experienced
by transmission-connected customers and do not include line losses that
occur from the distribution system. Distribution system losses account for
line losses experienced by distribution-connected customers and include
losses that occur between the transmission system and the customer or end
user.
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Figure 27: CE Parameters Worksheet
4.7. Admin Inputs
The tool is designed to calculate cost effectiveness using both a winter peak demand definition and
summer peak demand definition. Using the drop-down, users must select which peak demand
definition to use in the calculations. The default in the tool is summer peak demand. Please refer to
the IESO EM&V Protocols and Requirements for peak demand definitions and policies.
The Tool also contains an option “Display Format” to modify the user input forms to fit varying
screen resolutions. When “Small Format” is selected, a scroll bar will be added to certain user forms
to improve the user experience.
Figure 28: Admin Inputs Worksheet
4.8. Ratepayer Assumptions Table
When the ratepayer assumptions table is modified, the dollars must be input in real dollars (i.e., the
table must be tied to a particular dollar year). Specify the base year of the ratepayer assumptions
analysis year in cell F4 and input the new values in the shaded area.
Tool Tip: the base year of the rates table assumptions does not need to align with the base year
specified in the Tool. The Tool will align the base years.
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Figure 29: Rates Table Worksheet
4.9. Avoided Cost Table
When the avoided cost table is modified, the dollars must be input in real dollars (i.e., the table must
be tied to a particular base dollar year). Specify the base year in cell C4 and input the new values in
the shaded area.
Tool Tip: the base year of the avoided cost table assumptions does not need to align with the base
year specified in the Tool. The Tool will align the base years.
Figure 30: Avoided Cost Worksheet
4.10.Viewing Results
Once all other steps are complete (i.e., measures are selected, program budget is input, and external
inputs are added), the results can be viewed by the users.
There are three ways to view results in the Tool:
1. Detailed cost effectiveness results at the initiative, program, and portfolio level
2. Detailed measure-level savings calculations
3. Summary-level cost effectiveness results at the initiative, program, and portfolio level
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4.10.1. Detailed Cost Effectiveness Results
The detailed cost effectiveness results can be found in the “Initiative Portfolio CE Results”
worksheet. To view the results the user must click the “Calculation Portfolio Cost Effectiveness
Results” button. This button will dynamically populate the table within the worksheet with the
sector (or program), initiative and program year the user has selected in the Program Design
Module. This button will also collect the external inputs and aggregate them into the results. The
user also has the option to clear the results from the table.
The table will display the results of each cost effectiveness test (TRC, SC, PAC, RIM, PC, LC) and will
specify the cost and benefit components for each test.
Figure 31: Detailed Cost Effectiveness Results
4.10.2. Detailed Measure Savings
The detailed measure-level savings results can be found in the “Measure Savings Results” worksheet.
To view the results the user must click the “Calculate Measure Savings” button. This button will
dynamically populate the table within the worksheet with each measure selected in the Program
Design Module. The user also has the option to clear the results from the table.
This table will display the measure-level assumptions and the measure-level savings. The savings
are displayed as both gross and net peak demand and energy savings at the generation level for the
quantities specified in the Program Design Module. The savings will begin in the program year
specified by the user and will remain until the end of the measure’s EUL while taking into account
any early retirement scenarios.
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Figure 32: Detailed Measure Savings
4.10.3. Summary Cost Effectiveness Results
The summary cost effectiveness results can be found in the “Summary CE Results” worksheet. The
table in this worksheet dynamically populates when the user runs the detailed cost effectiveness.
The table will display the TRC ratio, PAC ratio and the LC in terms of $/MW-year and $/MWh for the
programs (sectors), initiatives and program years selected in the Program Design Module.
Figure 33: Summary Cost Effectiveness Results
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5. Scenarios
This section outlines a selection of scenarios the user may wish to undertake. It specifies the section
of the guide that will provide the processes to complete each scenario.
Figure 34: Sample User Scenarios
Scenario
Add a Custom Measure to
an Existing Initiative
Add a New Initiative with
Existing Measures
Add a Program or
Portfolio-Level Budget
Update Participation
and/or Incentives for
Existing Initiative
Add a Program Year to an
Existing Initiative
Description
Add a custom measure, use the drop-downs to specify
the sector and initiative the custom measure will be
added to, bulk add the existing initiative
Collect the data for the existing measure(s), add custom
measures inputting the existing measure data with the
new initiative name, ensure the name is unique, bulk
add the new initiative
Create a custom “dummy” measure with 0 savings,
name the sector or initiative “All” (or another
descriptive name), add the single measure in the
program design module with 0 participation and
measure level costs for the program years in which a
program or portfolio level budget is required, the
“dummy measure” will appear in the program budget
input step
Using the pre-populated tool, update the columns in the
measure selection and CE results tab
Add the measure in the Measure selection and CE
results tab specifying the additional year
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Procedure(s)
4.2.1
4.3.1
4.2.1
4.3.1
4.2.1
4.3.1
4.4
4.10.1
4.3.1 or 4.3.2
Appendix A: Calculation Engine
The Calculation Engine allows the tool to calculate savings and
cost effectiveness at the measure level. The user will not have
access to the worksheets included in this module. However, the
calculations and logistics are outlined for interested users.
Figure 35: Calculation Engine
The “Levelized Avoided Cost” worksheet and “Levelized Rates”
tables translate the avoided cost input and ratepayer assumption
table from the Admin Input Module into a levelized value that can
be used to easily compute the lifetime benefits and costs of CDM
resources.
The “Measure CE Results” worksheet uses both the user inputs
(e.g., measure selection, participation, program years, incentive levels, etc.) and the assumptions
embedded in the “Formatted Measure List” worksheet (e.g., kW and kWh savings, EUL, etc.) to
calculate the cost effectiveness at the measure level. At this point only measure-specific program
costs are accounted for. Other program and portfolio level costs are not included in these
calculations.
The “VBA References” worksheet is essential to the mechanics of the cost effectiveness tool and
provides the equations required for cost effectiveness analysis.
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